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The Challenges People Face When Saving for Down Payments

growing savings

When it comes to saving for down payments, there is a huge gap between those who are in their twenties and the seniors. It can be more daunting and challenging for young adults, especially for those young first-time property buyers to save for a down payment.


For the highly leveraged consumers these days, saving a down payment is not as simple as it was before or in the early 1980s when a personal saving rate exceeded twenty per cent. According to an estimate from mortgage insurer Genworth Financial Canada, the average purchase price for any first-time property buyer has actually soared 295, 000 dollars. This only means that the average first-time property buyers would have to save more than sixteen thousand dollars in order to cover the minimum five per cent down payment as well as closing costs. For a ten per cent closing posts and down payment, the buyer needs to save at least 31, 000 thousand dollars. It would be quite challenging for young people to scrape such amount of money today.


There is no doubt to say that saving for a down payment is much more daunting and even more challenging for young people than those seniors. They also have to make tough decisions in their lives in order to obtain the right amount of cash that they would use as a down payment.


With the very challenging economic conditions these days, it can be even more difficult for many young people to save for a down payment. However, it is does not mean that it is impossible. There are some viable options that they can opt for to assist them in saving the right amount of money for down payment. They just need to make an informed decision that would help them save cash that they require.

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